Steinhoff International has operated in the household goods trading industry since 1963, sourcing products from Eastern Europe for Western markets during communist rule. In 1989, the fall of the Berlin Wall presented opportunities for Steinhoff to invest in production and distribution in Europe. Steinhoff listed on the JSE in 1998 and established a vertically integrated business model with control over sourcing, manufacturing, logistics and retail. From 2005-2015, Steinhoff consolidated its operations through acquisitions in various regions to become a leading retailer with over 5,000 stores globally and revenue of over 134 billion rand in fiscal year 2015. In late 2015, Steinhoff obtained a primary listing on the Frankfurt Stock Exchange to align with its major operations in Europe.

1. S t e i n h o f f I n t e r n a t i o n a l , M A R K U S J O O S T E
HISTORY AND DEVELOPMENT OF STEINHOFF

2. WELCOME
2

3. H I S T O R Y : S T E I N H O F F
3
Authoritarian regimes
1963-1990: Sourcing in the East for the West
Communist regimes
Capitalist regimes
City: 2 mill + inhabitants
BDR Bundesrepublik Deutschland
DDR Deutsche Demokratische Republik
INVOLVED IN HOUSEHOLD GOODS TRADING SINCE 1963

4. H I S T O R Y : S T E I N H O F F E U R O P E
4
1989: FALL OF THE BERLIN WALL
• Huge impact on household goods industry
• Presented huge opportunities to Steinhoff

5. H I S T O R Y : S T E I N H O F F E U R O P E
5
STEINHOFF EUROPE ESTABLISHED
Invests in production and distribution capacity

6. 1 9 9 8 : L I S T I N G O N T H E J S E
Steinhoff
Europe
Steinhoff
Africa
100%
Manufacturing
and sourcing
Manufacturing
and sourcing
STEINHOFF INTERNATIONAL HOLDINGS LIMITED
100%
6

7. C H A I R M A N ’ S R E P O R T 1 9 9 8
7
STRATEGY
“The Steinhoff group is an integrated lifestyle
supplier that manufactures, markets, warehouses
and distributes household goods and timber-
related products”
7

8. C H A I R M A N ’ S R E P O R T 1 9 9 8
8
STRATEGY: BUSINESS MODEL
“Our business model is to be a low-cost producer
and distributor of furniture. Our marketing thrust is
global, catering for the mass middle market in the
geographical areas in which we trade”
“Logistics is a huge growth area for us with
warehousing and distribution networks being key
to the future”
8

9. C H A I R M A N ’ S R E P O R T 1 9 9 8
Control over sourcing, distribution and logistics
Control over
direct raw
materials
Low-cost
production and
sourcing in
emerging
economies
Sales strategy
Owned retail
outlets & strategic
partnerships
Control over
third party
sourcing
Control over
manufacturing
Wholesale
partnerships
Brand
partnerships
Control over sourcing, distribution and logistics
STRATEGY: BUSINESS MODEL
9

10. ESTABLISHINGTHE BASE: 1998 - 2004

11. 1 9 9 8 – 2 0 0 4 E S TA B L I S H I N G T H E B A S E
ESTABLISH A LOW-COST MANUFACTURING BASE
• Invest in manufacturing capacity in Poland
– German production largely relocates to Poland
• Cornick group acquisition
(presence in Australia and New Zealand)
ENTER UNITED KINGDOM AND AUSTRALIA
• Acquire Relyon
• Acquire Sprung Slumber
• Acquire manufacturing facilities of Freedom Group in
Australia
11

12. 1 9 9 8 - 2 0 0 4 : E S TA B L I S H I N G T H E B A S E
12
FACILITATE ENTRY INTO LOGISTICS AND RAW MATERIAL SUPPLY
• Acquire Unitrans Limited
• Acquire particle board manufacturer PG Bison
ESTABLISH SOURCING OPERATIONS IN ASIA
• Open sourcing office in Shenzhen
12

13. D E C E M B E R 2 0 0 4
13
x ü
Steinhoff
Europe
Steinhoff
Africa
Manufacturing
and sourcing
Logistic
services
Retail
Manufacturing
and sourcing
Logistic
services
Retail
ü ü ü x
Vertically integrated
furniture and household goods business
Vertically integrated
furniture and household goods business
STEINHOFF INTERNATIONAL HOLDINGS LIMITED
13

14. CONSOLIDATION2005 – 2015

15. 1 9 9 8 - 2 0 1 5
ESTABLISHING THE PILLARS OF OUR BUSINESS
Vertically integrated
Manufacturing
and sourcing
Logistics
services Retail
15

16. C O N S O L I D AT I O N : 2 0 0 5 – 2 0 1 5
CONSOLIDATE: UNITED KINGDOM AND PACIFIC RIM
• Acquire the listed retail group Freedom in Australia and
New Zealand
• Acquire the listed retail group Homestyle in the UK
• Acquire Unitrans UK
• Bolster worldwide sourcing operations
16
16

17. CONSOLIDATE: EUROPE
• Convert interests of various retail participation
agreements
• Investment in:
• Poco (2008)
• Conforama (2011)
• Continued investment in store footprint
CONSOLIDATE: AFRICA
• Acquisition of JD Group
C O N S O L I D AT I O N : 2 0 0 5 – 2 0 1 5
17

18. C O N S O L I D AT I O N : 2 0 0 5 – 2 0 1 5
Control over sourcing, distribution and logistics
Control over
direct raw
materials
Low-cost
production and
sourcing in
emerging
economies
Sales strategy
Owned retail
outlets & strategic
partnerships
Control over
third party
sourcing
Control over
manufacturing
Wholesale
partnerships
Brand
partnerships
Control over sourcing, distribution and logistics
✔
✔
✔
✔
✔ ✔
✔
✔
✔
SUCCESSFULLY INTEGRATED RETAIL ONTO LOW-COST SUPPLY CHAIN
18

19. STEINHOFFTODAY

20. RETAILER RETAIL BRANDS
EUROPE Conforama, POCO, ABRA, LIPO, Emmezeta
UK Harveys, Bensons for Beds, Cargo
ASIA PACIFIC Freedom, Snooze, POCO
AFRICA
JD furniture brands, POCO, Incredible Connection, HiFi Corp,
Pennypinchers, Timbercity, Hardware Warehouse, The tile house
2 261
RETAIL
OUTLETS
I N T E G R A T E D R E T A I L – H O U S E H O L D G O O D S
24
RETAIL
BRANDS
+/-
3.1m
M2 RETAIL
SPACE
20countries
+/-
50 000employees
HOUSEHOLD GOODS
20

21. S T E I N H O F F G R O U P S U P P L Y C H A I N
21
Integrated retail business and group procurement initiatives continue
to benefit from the enlarged European retail network
PURCHASING
POWER
> €4 bn
MANUFACTURING, SOURCING AND LOGISTICS

22. USING THE BEST RAW MATERIALS AND LATEST PRODCUTION TECHNOLOGY
21 FACTORIES MAKING BEDS/MATTRESSES, UPHOLSTERED FURNITURE AND
BATHROOM AND KITCHEN FURNITURE
S T E I N H O F F G R O U P S U P P L Y C H A I N
22

23. ROUTING AND TRANSPORT METHODS ARE OPTIMISED FOR EFFICIENCIES
>85 000+ TEUS OF PRODUCT SHIPPED AND DELIVERED IN EUROPE
S T E I N H O F F G R O U P S U P P L Y C H A I N
23

24. CUTTING EDGE TECHNOLOGY IS USED THROUGHOUT
MORE THAN 1 000 000 M2 WAREHOUSE SPACE IN EUROPE
S T E I N H O F F G R O U P S U P P L Y C H A I N
24

25. S E G M E N TA L R E V E N U E D E V E L O P M E N T
1998 2015
86%
13% Retail activities
Manufacturing, sourcing,
logistics and corporate
services
100%
REVENUE PER SEGMENT (HOUSEHOLD GOODS)
25

26. 2015 EXPANDINGDISCOUNT PRODUCT
RANGE

27. S T E I N H O F F G R O U P O V E R V I E W
27
STEINHOFF – PRE PEPKOR
• Leading European and Southern African retail company
• Focused on the value-conscious consumer
• Household goods market segment
• Revenue of R117 billion in FY14
RETAIL
MANUFACTURING, SOURCING
AND LOGISTICS & CORPORATE
PROPERTIES
Gross revenue R104 bn
Gross revenue R33 bn
Gross revenue R3 bn

28. P e p k o r E n h a n c e s S t e i n h o f f ’ s g r o w t h t r a j e c t o r y
• Complementary discount retail footprints and opportunity to
leverage Steinhoff’s experience in multiple European markets
• Profitable expansion of the Pepco business model within Steinhoff’s
existing European discount formats, thereby:
• Diversifying product mix with faster moving, less cyclical
products
• Increasing per square metre sales densities on existing
overhead base
Further Accelerate Growth Across Europe
• Combined supply chain and logistics functions, increasing profitability
• Greater buying power and economies of scale
• Substantial operational and supply chain overlap and cost saving
opportunities in:
• Eastern Europe, Australia and Africa
28

29. 2 0 1 5 S T E I N H O F F R E T A I L
1 679
stores
homehomehome
THE NATION’S STORE, WHERE YOUR MONEY BUYS YOU MORE!
4 222
stores
471
stores
29

30. Australia
471 Stores
c.558 000m2
Europe
1 679 Stores
c.2.5 million m2
Rest of Africa
265 Stores
c.105 000m2
South Africa(1)
3 957 Stores
c.1.9 million m2
Asia
Factories and
Sourcing Offices
Combined group retail presence
Combined group manufacturing and
sourcing presence
Note: (1) Includes Botswana, Lesotho, Namibia and Swaziland.
6 000+ STORES (5 MILLION SQUARE METERS)
THE COMBINED GROUP IS STRONGLY POSITIONED TO TAKE ADVANTAGE
OF THE MARKET OPPORTUNITY
S T E I N H O F F / P E P K O R – T R A N S A C T I O N R A T I O N A L E
30

31. 2015 resultsHIGHLIGHTS

32. F I N A N C I A L P E R F O R M A N C E
Segmental information
NET REVENUE OPERATING PROFIT
FY15
€m
FY14
€m
FY15
€m
FY14
€m
Integrated retail – Household goods 7 623 7 119 956 858
Integrated retail – General
merchandise (3 months)
888 - 120 -
Integrated retail – Automotive 1 309 1 198 39 36
Total operations (EURO) 9 820 8 317 1 115 894
Translation rate EUR:ZAR 13.7347 14.1106 13.7347 14.1106
FY15
Rm
FY14
Rm
FY15
Rm
FY14
Rm
Integrated retail – Household goods 104 696 100 449 13 134 12 110
Integrated retail – General
merchandise (3 months)
12 199 - 1 645 -
Integrated retail – Automotive 17 973 16 915 536 512
Total operations (ZAR) 134 868 117 364 15 315 12 622

33. F I N A N C I A L P E R F O R M A N C E
Equity – shares issued during FY15
2,100
3,652
350
220 11
926 45
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Jun-14 ABB & Rights
issue
Convertible
bonds
Share incentive
scheme
Pepkor vendor
consideration
PSG vendor
consideration
Jun-15
Noofshares(m)
WANOS – 2 737m shares increased by 38% (FY14: 1 977m shares)
33

34. F I N A N C I A L P E R F O R M A N C E
FY15
Rm
FY14
Rm
Cash generated from operating activities 20 286 16 141
Investing activities (21 124) (16 684)
Asset expansion capex (3 229) (3 070)
Asset replacement capex (1 495) (1 807)
Net investment in subsidiaries (13 366) (4 518)
Other investments and loans (3 034) (7 289)
Financing activities 23 630 6 513
Increase in cash and cash equivalents 22 792 5 970
Cash flow summary
34

35. C A P I T A L S T R U C T U R E
Net debt
44,071
30,227
26,142
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
FY13 FY14
Pro forma*
FY15
NET DEBT (Rm)
*Pro forma as announced post rights issue in July 2014
35

36. Y E A R U N D E R R E V I E W
Financial highlights
REVENUE INCREASED*
15%
HEADLINE EARNINGS
INCREASED*
36%
DILUTED HEADLINE EARNINGS
PER SHARE INCREASED*
1%
NET CASH INFLOW FROM
OPERATIONS INCREASED
26%
WEIGHTED AVERAGE NUMBER
OF SHARES INCREASED
38%
NET ASSET VALUE PER SHARE
INCREASED
22%
DIVIDEND INCREASED
10%
* From continuing operations
36

37. STRATEGICOUTLOOK

38. S T E I N H O F F B U S I N E S S M O D E L
38
The environment shaping Steinhoff’s strategy Steinhoff’s strategy

39. F R A N K F U R T L I S T I N G
39
European prospectus
• Issued at the end of November 2015
PRIMARY EUROPEAN LISTING IN FRANKFURT
• Aligned to the majority of Steinhoff’s geographic
locations
• Approximately 75% of Steinhoff’s operating profit
is earned outside of Africa, largely in Europe.
• Reporting currency change to Euro
• Secondary listing on Johannesburg Stock Exchange
Listing date 7 December 2015
No capital raising at listing
39

40. THANK YOU